Hong Kong Fintech Firm Expanding Into Mining Pool Business

17M handshake BTCC and VC

Value Convergence (VC) Holdings Limited is in the process of acquiring a stake at BTCC Pool Limited.

The two companies struck a memorandum of understanding (MOU) wherein VC is buying a 49 percent equity of BTCC Pool for 147 million Hong Kong dollars (US$17 million) if successful.

Since it is a non-legally binding MOU, it is expected that stipulations therein are subject to negotiation and amendments.

Formerly BTC China, BTCC is presently operating as its major business lines the mining pool, the Mobi cryptocurrency wallet, and a USD/BTC exchange. It started as an on-shore Chinese business entity but had to move its operations overseas due to strict regulations imposed by the People’s Bank of China wherein it has criminalized initial coin offerings (ICOs) and crypto exchange services in the Chinese mainland.

In January, BTC China itself was acquired by a Hong Kong-based blockchain investment fund and became BTCC.

BTCC has a 1.1 percent hash power according to data provided by blockchain.info.

The VC Group is a publicly traded securities brokerage and asset management firm in Hong Kong. In its announcement, its subsidiary, Initial Honor Limited is managing the acquisition. The firm is in the process of expanding its business into the Fintech space.

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